What is an enhanced life estate deed?
An enhanced life estate deed transfers ownership of real property to beneficiaries outside of probate. The owner of the property makes a gift of it to their beneficiaries, who are referred to as remaindermen or remainder beneficiaries, but can continue living in the home until the time of their death.
What is a life estate deed in Massachusetts?
A life estate deed in Massachusetts is a deed in which two or more people each have ownership of real property, but they have it for different periods of time. Mary is the “life tenant” and she retains the exclusive right to enjoy and live in the residence until she passes away.
Can you refinance with a life estate?
In life-estate speak, the person you give title to is known as the “remainderman.” A life estate doesn’t prevent you from refinancing or taking out a home equity loan, but you’ll need the remainderman’s go-ahead.
What is a reserving life estate?
A deed with a reserved life estate is used when you wish to both pass your real property to someone upon your death and also protect the property from nursing-home liens. The individual or individuals reserving the life estate are referred to as life tenants.
Who pays the inheritance tax on the death of a life tenant?
On the Life Tenant’s death, subject to any exemptions or reliefs which then apply, IHT will be payable on the combined value of the trust assets and the Life Tenant’s own estate. The trustees will be responsible for paying the proportion of the IHT payable in relation to the trust assets.
Can the holder of a life estate mortgage the property?
Can Someone With a Life Estate Sell the Property? A life tenant cannot sell the property or take out a mortgage loan against it without the agreement of the remainderman. The reverse is also true: The remainderman cannot sell or mortgage the property during the lifetime of the life tenant.
Does Fannie Mae accept life estates?
If the property is held in a life estate, what is required for the loan to be eligible for delivery to Fannie Mae? The holders of both interests must grant their interests in the property by signing the security instrument for the loan to be eligible for delivery to Fannie Mae.
An enhanced life estate deed can be used like a WarrantyDeed or a Quit Claim Deed but with added benefits to the transferor. The Massachusetts Life Estate Deedis a document that grants ownership of a parcel of real propertyto two separate parties: (1) the Life Tenant, and (2) the Remainderman.
What is a Massachusetts life estate deed?
What is a Massachusetts life estate deed? A life estate involves real estate. In basic terms, a life estate is when two or more people each have ownership in a piece of real property, but they have it for different periods of time. The person who holds the “life estate” has ownership of the property for the rest of their life.
What do you need to know about a life estate deed?
The Massachusetts Life Estate Deedis a document that grants ownership of a parcel of real propertyto two separate parties: (1) the Life Tenant, and (2) the Remainderman. As in other states, the Massachusetts Life Estate Deed gives the Life Tenant completeuse and ownership of the property for a certain period of time.
Who is the remainderman of a life estate deed?
When the Life Estate owned by the Life Tenant terminates, the Life Estate Deed transfers ownership of the property to the Remainderman. The Remainderman is the person or persons whose names are XXXXX XXXXX the Life Estate Deed as a Remainderman.